This second part of the interview to Shane Kim and Dave Mitchell covers "... their feelings toward Nintendo as competition, Microsoft's strategy of funding game development in Japan, the upcoming episodic Halo content, Peter Jackson, and more ...".
And yes, XNA GSE is mentioned throughout the interview. Take for instance: "... we've got over eighty universities from eight countries that are teaching, including Japan. In Japan, we've got Iwatani-san, the creator of Pac-Man, extremely excited about getting into the possibilities of Express. As a result, when he retires, he is going to be teaching at Tokyo Polytechnic University, using Game Studio Express to teach game design to future game developers ... ".
The creator of Pac-Man ... impressive, ugh?Ok, please all repeat after me: "XNA rules!" ... ;)